Product quality has always been the core concern for online shoppers. Building on this, platforms and merchants need to improve delivery services, strengthen their review systems and offer dependable returns and exchanges to boost their overall competitiveness.
Laurel Gu, Director, China Insights
Market Definitions
Online retailing refers to a retail model that allows consumers to search for and purchase goods and services through the following online channels:
- Comprehensive shopping platforms, eg Tmall, JD.com (京东), Pinduoduo (拼多多)
- Fresh grocery ecommerce, eg Dingdong Maicai (叮咚买菜), Freshippo (盒马)
- Social commerce, eg Xiaohongshu (小红书)
- Brands’ official websites/apps/WeChat mini programs
- Short video platforms, eg Douyin (抖音), Kuaishou (快手)
- Discount/special sales platforms, eg Vipshop (唯品会), Taote (淘特)
- Second-hand platforms, eg Xianyu (闲鱼)
- Cross-border ecommerce, eg overseas shopping from Amazon
- Instant retail*/delivery platforms, eg Ele.me (饿了么), Meituan (美团)
* instant retail refers to a retail model where local retailers such as physical shops and supermarkets rely on digital platforms to provide quick delivery (usually within thirty minutes or one hour) to consumers nearby. When discussing topics related to instant retail, this Report will focus on categories of goods (such as snacks, personal care products and electronics) other than food delivery. Given that food delivery accounts for a significant portion across major instant retail platforms, the Report will also include relevant data for reference.
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Executive summary
- Key issues in this Report
- Definitions
- What you need to know
- Opportunity: as everyday low prices become the norm, ecommerce promotions can break through by focusing on experience
- Opportunity: beyond speed and subsidies, instant retail platforms must build a full-category, holistic trust system
- Opportunity: technology enables more precise, empathetic and safe matching of people, products and scenarios
- Keys to success
- Online retail channels are shifting from a sales-driven model to AI-enhanced efficiency, ultimately moving towards collaborative ecosystem building
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The market
- Market trends
- Overview of online retail market trends
- The Chinese retail market has entered a phase of steady development across both online and offline channels
- Graph 1: retail sales of physical goods, 2015-25
- Graph 2: retail sales of physical goods, 2015-25
- The demographic dividend for online shopping has peaked, and the online retail market is saturated
- Graph 3: YOY growth rate of physical goods retail sales, 2015-25
- Graph 4: online shopping user base and YOY growth rate, 2015-24
- Content has become the main growth driver for online retailing
- Graph 5: GMV share (%) of each ecommerce format*, 2024
- Graph 6: GMV YOY growth of each ecommerce format*, 2024
- Content ecosystems help platforms build differentiated competitive advantages
- Instant retail channels bring incremental value to brands and retailers across multiple dimensions
- In 2025, instant retail has become the competitive focus of major ecommerce platforms
- Graph 7: online takeaway shopping user base and year-on-year growth rate, 2015-24
- Taobao, Meituan and JD.com are engaged in a three-way tug-of-war for dominance in instant retail
- Market factors
- Macroeconomic overview
- Consumer confidence rebounds after fluctuations
- Graph 8: confidence index* for improved financial situation in the next three months, 2020-25
- Graph 9: consumer confidence in their finances improving in the coming three months, 2020-25
- Consumers are no longer tightening their belts and waiting for discounts, brands with everyday low prices are becoming more appealing
- Graph 10: ways consumers improve their financial situation, 2024-25
- Everyday low prices extend across channels and scenarios, driving ecommerce promotions towards value transformation
- In the ‘lazy economy’, convenience has become essential for shoppers, driving online retail to evolve rapidly towards instant gratification
- Graph 11: attitudes towards paying for convenience – somewhat agree/strongly agree, by age, 2025
- Retail market expansion is primarily driven by Tier 2 and lower tier cities
- Graph 12: share of total retail sales of consumer goods, Q1-Q3 2025
- Graph 13: YOY growth rate of total retail sales of consumer goods, by city tier, 2024-25
- The online-only model has limitations: in Tier 2 and lower tier cities, brand credibility still requires endorsement through offline stores
- Graph 14: attitudes towards offline store shopping – I only consider buying brands that have offline physical stores, by city tier, 2025
- Market highlights
- Integrate online and offline touchpoints to further support brands in building an omnichannel marketing matrix
- Traditional online internet-famous brands are moving offline to build a trust-led closed-loop ecosystem
- Comprehensively define and support high-quality content, optimise the ecommerce content ecosystem from the consumer’s perspective
- Seamless integration of online spending and entertainment content brings new ideas for brand marketing and conversion
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The consumer
- Summary
- Consumer tracking: online retail purchasing habits and considerations
- Online retail platforms are diversifying, with brand/retailer-owned platforms, short video platforms and instant delivery platforms leading growth
- Graph 15: buyer penetration over the past six months, 2022-25
- The proportion of frequent shoppers on short video platforms still has room to grow, while instant delivery platforms record a sharp rise in frequent users
- Graph 16: proportion of high-frequency shoppers* among shoppers across all platforms, 2022-25
- Meet consumers’ online shopping demand: products first, supported by delivery, aftersales service and user reviews
- Graph 17: online shopping considerations, 2022-25
- Opportunity: target high-income consumers with premium products and a robust user review ecosystem to build trust
- Graph 18: online shopping considerations, by monthly household income, 2025
- Build a highly transparent, curated shopping platform for high-income consumers
- Graph 19: interest in future online shopping experiences, by monthly household income, 2025
- Build a library of user evidence that is authentic, in-depth, long-term and quantifiable
- eCommerce promotions must shift from low price frenzies to experience-centric celebrations as everyday low prices become mainstream
- eCommerce promotions combined with government subsidies deliver a strong short-term consumption boost
- Graph 20: YOY growth rate of commodity value sales by companies above a designated size, by category, 2019-25
- Graph 21: 2025 618 value sales and YOY growth on comprehensive e-commerce platforms*, by category (top 10), 2025
- eCommerce promotions are event-led occasions that complement everyday low price shopping
- Graph 22: 618 shopping willingness, 2025
- Graph 23: 618 shopping mindset, 2025
- Directions for improving the ecommerce promotion experience: fewer tricks, more excitement, real value
- Graph 24: reasons for being unwilling to participate in 618 shopping festival, 2025
- Graph 25: reasons not sure if willing to participate in 618 shopping festival, 2025
- Extended duration, simplified rules and consumer subsidies have become the core themes of today’s promotions
- Opportunity: boost high-income consumers’ enthusiasm for promotions by offering new experiences
- Graph 26: 618 shopping willingness, by monthly personal income, 2025
- Graph 27: 618 shopping mindset, by monthly personal income, 2025
- Enhance the festive atmosphere and turn promotions into opportunities to promote brands, test new products and increase user interaction
- With instant retail entering a full-category boom, platforms must build a holistic trust system, not just offer speed or subsidies
- Overview of key players in the instant retail market
- Meituan, Alibaba and JD.com form the first tier, with white-collar women the core audience
- Graph 28: purchase penetration rate of food delivery and instant retail platforms, 2025
- Younger people’s demand for instant delivery has expanded from food delivery to a wider range of categories
- Opportunity: the Post-2000s’ demand for instant delivery has expanded from food delivery to a wider range of categories
- Graph 29: instant retail category purchases, by generation, 2025
- Multi-category operations will become the core competitiveness of instant retail platforms and merchants
- Graph 30: instant retail category purchase situation, 2025
- Support the full-category boom of instant retail with product quality assurance, service systems and diverse business models
- Quality assurance is the foremost consideration when purchasing on instant retail platforms
- Graph 31: instant retail purchase considerations, 2025
- Opportunity: build a comprehensive trust system covering source controls, process transparency and aftersales assurances
- Technology empowers the future online retailing experience
- Leading ecommerce platforms are ramping up AI strategic deployments, shifting competition from price to efficiency and experience
- On the hardware level, ecommerce logistics is escalating into a technology arms race, with policy support accelerating the deployment of smart supply chains
- Consumers identify virtual try-on as the most preferred technology application in online shopping
- Graph 32: technology functions or services that improve the online shopping experience, 2025
- Virtual preview features can extend beyond beauty and fashion to home products
- Graph 33: technology features or services for improving online shopping experience – preview of how the product will look at home, by monthly household income, 2025
- Technology applications must first ensure personal data privacy and security
- Graph 34: interest in future online shopping experiences, 2025
- Take sincerity, practicality and controllability into account
- Opportunity: provide high-income consumers with an exclusive, highly personalised technology experience
- Graph 35: technology features or services for improving online shopping experience, by monthly household income, 2025
- Build consumption scenarios based on the interests and emotional needs of high-income consumers
- Graph 36: interested future online shopping experiences, by monthly household income, 2025
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Appendix – methodology and abbreviations
- Methodology
- Methodology: TURF analysis
- Research methodology: confidence index calculation formula
- Abbreviations
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